Price Action Gap (NT7)

Price Action Gaps identify both bullish and bearish intrabar low volume activity. When the Low[0] > High[2] (The Current Bars Low is Greater Than the High 2 Bars Ago) this indicates trending activity on the lower timeframe charts. This is important because price action often overlaps more often than not and these areas do not contain as much volume relative to overlapping bars. This pattern can be observed and confirmed by loading a volume profile indicator on a lower time frame. By loading the Price Action Indicator on your chart and doing manual backtesting you will begin to see where market participants pile in to force trends to take place. You'll also see where those trend fail. Use your ability to easily identify these levels to your advantage by beginning to understand the psychology of what market participants are trying to do at what price levels.